OREANDA-NEWS. ExxonMobil and UK-Australian resources firm BHP Billiton plan to invest A$400mn ($287mn) to replace a crude and condensate pipeline at their Gippsland Basin joint venture in Australia.

The 187km pipeline will link the Longford and Long Island Point facilities in Victoria. Construction is likely to start later this year, depending on regulatory approval.

Oil and gas from the offshore Bass strait is delivered to Longford, from where it supplies about 20pc of domestic crude demand and 40pc of east coast Australian gas needs. The Long Island Point plant stores crude and processes natural gas liquids.

Longford is also the site of natural gas and LPG processing facilities, and the pipeline work will help maintain natural gas supplies, ExxonMobil said. The firm operates the 50:50 Gippsland Basin joint venture with BHP Billiton.